What caused NEE's earnings to decline in 2024?

NextEra Energy's earnings declined in 2024 primarily due to higher interest rates and increased expenses in its renewables segment, which negatively impacted its profit margins. Here are the specific factors that contributed to this decline: 1. **Higher Interest Rates**: The impact of higher interest rates, which were raised by the Federal Reserve to curb inflation, was significant. These higher rates made dividend-paying stocks less attractive and increased borrowing costs for NextEra Energy. The company reported $802 million in interest expenses during the second quarter of 2024, up from $135 million in the same period the previous year. 2. **Renewables Segment Expenses**: Increased expenses in the renewables segment also played a role in the decline of earnings. Despite strong growth in renewable energy projects, the segment's expenses increased, which negatively affected profitability. In summary, the combination of higher interest rates and increased expenses in its renewables segment significantly impacted NextEra Energy's earnings in 2024, leading to a decline in profitability.